Forex Pros – The euro erased losses against the U.S. dollar on Thursday, pulling away from the daily low after dipping following remarks by European Central Bank President Jean-Claude Trichet.
EUR/USD rebounded from 1.4205, the daily low, to hit 1.4274 during European late morning trade, gaining 0.18%.
The pair was likely to find support at 1.4119, the low of July 17 and resistance at 1.4422, the high of May 11.
The single currency dipped after a report quoted ECB head Jean-Claude Trichet as saying the bank would be unable to accept Greece’s government bonds as collateral in the event of a restructuring of its debt.
Another ECB official, Juergen Stark said a restructuring of Greek debt would make it impossible for the ECB to continue to accept its bonds as collateral in liquidity operations.
Meanwhile, the euro was slightly higher against the pound, with EUR/GBP inching up 0.03% to hit 0.8815.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.
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